The Effects of Non-Audit Services on Auditor Independence in Nigeria

Abstract

This study encompasses around the effects of non-audit services on auditor independence, threats to the auditor’s independence, non-audit services as a source of income for audit firms, threats to the auditors independence, factors that influences the quality of an audit, non-audit services relationship with auditor independence in Nigeria.

51 respondents successfully completed the questionnaires of which all are auditors in respectable audit firms in Nigeria, the evaluation of their views sheds more light into the objectives of the research. The findings of the research point out that self-interest which was noted as the major threat to auditor independence followed by familiarity and advocacy as intimidation and self-review were recognized as the least threats to auditor’s independence in Nigeria. Provision of non-audit services also have effects on the independence of auditors, some of which includes an increase in the auditing fee (source of income), regulating the quality of auditing in Nigeria. This indicates that provision of non-audit services is a strong determinant of audit quality and the independence of auditors among Nigerian firms.